Ajinomoto Co., Inc. to Build a New Plant at

AJINOMOTO (MALAYSIA) BERHAD

Strengthen the Development and Production System for Halal Products

Start of Operation Scheduled for April 2022, Total Capital Investment of Approximately JPY 9.3 Billion

TOKYO, August 19, 2019 -Ajinomoto Co., Inc. ("Ajinomoto Co.") will build a new plant in techpark@enstek (Bandar Enstek, Negeri Sembilan, Malaysia) for the relocation of its consolidated subsidiary AJINOMOTO (MALAYSIA) BERHAD ("AMB"). Capital investment will total approximately MYR 355 million (approximately JPY 9.3 billion1), and operations are scheduled to start in April 2022. The new plant will produce umami seasoning AJI-NO-MOTO®, flavor seasoning TUMIX®, Rasa SifuTM, menu specific seasoning SERI-AJI®, and products for processed food manufacturers.

1. MYR 1 = JPY 26.32 (exchange rate as of July 31, 2019)

Since its foundation in 1961, AMB has been located in Kuala Lumpur, but further residential, commercial and other development is expected in the surrounding area. To ensure a satisfactory environment for stable production in the future, AMB decided to relocate and build a new plant. The site, techpark@enstek, was selected because it offers an infrastructure that meets halal standards, good conditions for logistics, and the potential to secure additional space in the event of future business expansion.

The features of the new plant will be as follows.

  1. Enhanced development and production functions that will enable the Ajinomoto Group to supply halal- compliant products and specialty ingredients
  1. Like the existing plant, it will continue to maintain "White List" recognition, which is the highest level of halal certification from JAKIM2. This will help to enhance the value it provides in the Malaysian market and to expand exports of halal products to ASEAN and Islamic countries
    1. Abbreviation for Department of Islamic Development Malaysia, the halal certification body of Malaysia
  2. Strengthened application development3 and production functions for specialty ingredients for ASEAN countries, an area where AMB plays a central role
    1. Development of optimal raw material mixtures to meet different dietary preferences and needs in each country
  1. Realization of a next-generation food products plant through the introduction of advanced technology
  1. Optimization of operations and productivity improvements through automation and digitalization
  2. Establishment of an environment conducive to work (creation of an age- and gender-inclusive work environment through labor-saving production processes)
  1. Proactive response to the environment and society
  1. Reduction of CO2 emissions by changing the heat source from fuel oil to natural gas, consideration of introducing renewable energy such as solar power
  2. An open, attractive plant that conducts community engagement programs such as factory tours and cooking classes

Ajinomoto Co. has been ensuring food products business growth with a stronger regional portfolio as a key strategy of FY2017-2019Medium-Term Management Plan. With the construction of this new plant that will not only feature enhanced functions but will also be deeply rooted in the region and proactively address environmental and social issues, AMB aims to make a greater contribution to society in Malaysia and neighboring ASEAN and other countries.

Overview of the New Plant

(1)

Location:

Bandar Enstek, Negeri Sembilan, Malaysia

(2)

Site area:

Land: approximately 188,000m²; total floor area: approximately 54,000 m²

(3) Total capital investment:

Approximately MYR 355 million (approximately JPY 9.3 billion)

(4)

Business description:

Manufacture and sale of seasonings (umami seasoning AJI-NO-MOTO®,

flavor seasoning TUMIX®) and other products

(5)

Schedule:

Start of construction: Second half of fiscal 2019; Completion: April 2022

Reference

Overview of AJINOMOTO (MALAYSIA) BERHAD

(1)

Location:

Kuala Lumpur, Malaysia

(2)

Establishment:

1961

(3)

Representative:

Naoko Yamamoto, President

(4)

Net sales:

MYR 448 million (approximately JPY 11.7 billion) (Fiscal 2018)

(5)

Number of employees:

Approximately 600 (as of June 2019)

(6)

Business description:

Manufacture and sale of seasonings (umami seasoning AJI-NO-MOTO®,

flavor seasoning TUMIX®) and other products

(7)

Capital:

Approximately MYR 65 million (approximately JPY 1.7 billion)

The Ajinomoto Group is a global leader in amino acids thanks to its advanced bioscience and fine chemical technologies. Its products cover a range of fields such as seasonings, processed foods, beverages, amino acids, pharmaceuticals, and chemicals. Since discovering "umami" (the fifth basic taste, created by glutamic acid, a type of amino acid) in 1908, we have been scientifically pursuing the possibilities of amino acids, and supporting the healthy lives of people all around the world. Based on our corporate message "Eat Well, Live Well" we aim for further growth and continuous contribution to greater wellness for people by creating value with communities and society.

The Ajinomoto Group has offices in 35 countries and regions, and sells products in more than 130 countries and regions. Its sales were 1.1274 trillion yen (10.1 billion U.S. dollars) in fiscal year 2018. To learn more, visit https://www.ajinomoto.com/.

For further information, please contact:

Ajinomoto Co., Inc. Public Communications Department; pr_info@ajinomoto.com

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Ajinomoto Co. Inc. published this content on 19 August 2019 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 August 2019 01:26:09 UTC